By Johan Potgieter, cluster industrial software lead at Schneider Electric.
Greener blockchain, who would have thought? Blockchain’s very nature sees it consuming a lot of energy; with great power comes great power usage. But here we are, and green blockchain continues to garner significant attention, driven by the heightened awareness of the environmental consequences of blockchain-related systems.
According to ScienceDirect’s report ‘Green blockchain – a move towards sustainability’, green blockchain entails the utilisation of said technology in a sustainable manner by prioritising the reduction of carbon emissions and energy consumption.
The report says that in recent times there has been a surge in the establishment of green blockchain initiatives. These operate within the broader blockchain ecosystem, which encompasses a comprehensive network of technologies, companies, organisations and individuals engaged in the development, deployment and utilisation of green blockchain-based solutions.
Johan Potgieter, cluster industrial software lead at Schneider Electric.
The greener supply chain
The above developments offer a real advantage to organisations that utilise blockchain in their daily operations. One such operation is the supply chain, which benefits not only from greener blockchain operations, but also from the sustainability and eco-friendly gains that come with utilising the technology.
For example, by integrating blockchain with AI-driven analytics, supply chains can monitor energy usage, emissions and waste, identifying opportunities for improvement. Blockchain therefore ensures the accuracy and trustworthiness of this data, fostering collaboration among stakeholders to implement eco-friendly initiatives.
Furthermore, blockchain improves traceability and transparency, which bolster greener supply chain management. This is especially important in sectors like food and beverage and pharmaceutical, where it’s important to confirm the legitimacy and quality of the items.
Combined with AI, blockchain enables real-time tracking of products from their origin to the end consumer. This transparency ensures that claims such as organic certification, fair trade and responsible sourcing are verifiable, driving sustainable practices across the supply chain.
Blockchain’s immutable records also reassure consumers about the authenticity of products, whether it’s organic produce or ethically sourced clothing. Again, this builds trust and strengthens brand loyalty and contributes to a company’s overarching sustainability efforts.
Contributing to the value chain and improved service delivery, blockchain’s distributed ledger architecture minimises reliance on single points of failure. This decentralisation facilitates quicker identification of alternative suppliers or routes, ensuring supply chains remain operational under challenging circumstances.
Promoting social responsibility
AI can monitor labour conditions, verifying compliance with ethical standards such as fair wages and safe working environments. Adding to this functionality is blockchain’s ability to provide an immutable record of these practices, thus holding all stakeholders accountable.
Lastly, by enabling direct interactions between producers and consumers, blockchain-based supply chains enhance visibility and ensure fair compensation for small-scale farmers, artisans and businesses. This democratises the supply chain and promotes inclusivity.
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